Preapproved payday loans offer a convenient solution to getting the funds you need quickly. But before applying, be sure to understand both its advantages and drawbacks.
Payday loans are short-term financial products designed to help people cover unexpected expenses. Unfortunately, they come with high fees and interest rates that could put borrowers in debt.
What is a payday loan?
A payday loan is a short-term unsecured loan of $500 or less that must be repaid with your next paycheck. To be eligible, you’ll need proof of income (such as a pay stub) and valid identification.
These loans are popular with borrowers who have poor credit or no credit and struggle to make payments on time. Unfortunately, the interest rates and fees associated with them may be prohibitively high, leading to an endless cycle of debt.
When applying for a payday loan, the lender will verify your income by checking a pay stub and collecting bank account details. After approval is given, you can collect the cash at either the store or online within one day – sometimes even same-day!
Though it can be tempting to get a payday loan when in need, it’s essential to first consider other options first. Asking family and friends for assistance often works out more cost-effectively than payday loans and can help get back on track financially.
How do I get a pre approved payday loan?
A pre approved payday loan can provide the cash you need without worrying about missing your next pay check. However, it’s important to remember that this type of loan may not be suitable for everyone.
Before applying for a loan, most lenders require verifiable income. This could include your pay stub, W-2 form or government benefits that meet the lender’s minimum requirements.
If you need a pre approved payday loan, BillsHappen is your go-to online service that can match you with the perfect lender for your situation. They provide various payment options so that no payments are missed and can even direct deposit funds directly into your bank account as quickly as possible. Furthermore, BillsHappen serves as an excellent source of information regarding current loan and credit card offers in your area.
What are the benefits of getting a pre approved payday loan?
Preapproved payday loans are an ideal solution for getting the money you need when you need it most. These loans are easy to acquire and accessible even to people with bad credit or no credit at all.
Payday loans typically feature low interest rates, since borrowers can usually repay them gradually over time rather than all at once at the end of their loan term.
However, it’s essential to choose your lender carefully. Search for one that doesn’t charge any hidden fees, offers a fixed interest rate, and has transparent terms and conditions on their payday loans.
A pre approved payday loan will save you time by reducing the number of applications to submit and eliminating the uncertainty about acceptance. Most lenders provide direct deposit of your payday loan proceeds into your checking account within one business day – saving you valuable time!
What are the disadvantages of getting a pre approved payday loan?
The primary drawback to taking out a preapproved payday loan is that it can quickly spiral you into debt. With rising interest rates on these loans, it may become impossible to escape this cycle and become permanently indebted.
If you find yourself in this predicament, consider getting a low-interest loan instead of a payday loan. Credit unions and small loan companies often provide such loans.
Another alternative is debt counseling from a nonprofit credit counselor. These agencies can work with your creditors to create an affordable payment plan, potentially eliminating the need for payday loans altogether.
If you decide to take out a payday loan, make sure you pay it back promptly and not exceed your credit limit. Doing so could damage your credit score and leave debt collectors calling at night.